Downsizing the US network giant Cisco: In the company to 5,500 jobs eliminated. This corresponds to almost seven percent of the workforce, Cisco announced. In a media report earlier been talk, it might even 14,000 jobs will be cut.
During the quarter, sales of Cisco fell 1.6 percent to 12.6 billion dollars. In traditional business with routers, the drop was even six percent. By contrast, revenue in the division for security solutions by 16 percent. Here is the future are one of the priorities. Net income rose to 2.3 billion in the same period last year to 2.8 billion dollars.
Cisco CEO Chuck Robbins for over a year in office. He built the company from California to since – with numerous, mostly small acquisitions. In the future, also the software sector play a greater role. The traditional business into the background contrast. This is under pressure because telecom companies spend less on network equipment such as switches or routers. In addition, competition from companies such as Huawei and Juniper Networks is very hard.
Cisco has already invested in new products like analysis software and cloud-based solutions for data centers. The company employs more than 70,000 employees last. The savings from the job cuts are to flow into the high-growth areas.
Even with other technology companies, which are put on the defensive by the rapid change in the industry, all signs point to Save. At Microsoft, a total of 4,700 points – four percent of the workforce – eliminated. With HP Inc, which emerged from the traditional PC and printer manufacturer Hewlett-Packard hardware manufacturers, to leave the company by the end of 3000 employees.